SEPANG: Malaysia Aviation Group Bhd (MAG) is leveraging its 10th anniversary to chart a bold growth path anchored on digital partnerships, regional catering hub and operational resilience as it seeks to secure its place in a highly competitive global aviation market.
Speaking at the group’s Airline 101 media tour today, Malaysia Airlines chief operating officer Captain Nasaruddin A. Bakar painted a picture of transformation rooted in lessons from past crises, including the tragedies of MH370 and MH17, and the Covid-19 pandemic that shut down 95% of global flight networks.
“From about 800 airlines globally, only 300 survived during Covid. Now, the industry has reset itself and so have we. For MAG, the learning was to restructure and not put every business in one basket,” he said.
MAG today operates under three business pillars: airlines (Malaysia Airlines, Firefly and MASwings), loyalty (led by Enrich) and aviation services such as engineering and catering.
Nasaruddin highlighted that MAG has partnered with global technology leaders including Google and Samsung, along with Spanish and Canadian firms, to future-proof operations and diversify income streams.
“These heavyweight teams are able to enhance our reach to a bigger customer base,” he said.
“First and foremost, it’s about increasing our revenue base and secondly, improving our operations.”
While no specific revenue targets were shared, he confirmed that MAG views digitalisation as a “moving target” and is exploring further opportunities in artificial intelligence, financial technology and loyalty ecosystems.
Digitalisation, he stressed, is one of MAG’s main enablers for growth through 2030.
A major highlight of the group’s plans is a new catering complex, set to begin construction in 2026 and complete in 2029, which could become one of Asia’s largest airline kitchens.
Currently, MAG Catering Services prepares around 26,000 meals daily, but the new facility will double capacity to 50,000.
“With this new setup, we will be able to cover all of Malaysia Airlines’ network capacity and still have surplus to support foreign carriers,” Nasaruddin said.
The move follows MAG’s decision to insource catering after ending its long-standing partnership with Brahim’s Holdings last year.
Nasaruddin said the group managed to recover within a month, investing in high-lift trucks and other equipment to stabilise operations.
“Our on-time performance because of catering is 100% most of the time. The results have been very good,” he said.
Nasaruddin also offered a behind-the-scenes look at the scale of running an airline, noting that a new long-haul route can take up to five years of planning and involves over 800 processes before an aircraft even pushes back.
He emphasised that the aviation industry is among the most regulated globally, with strict oversight by both the Civil Aviation Authority of Malaysia and international bodies.
Safety, he said, remains the group’s “number one non-negotiable”.
“Airline is the safest transport industry. We target zero incidents, because in this business, even one is too many,” he added.
Operational performance, particularly on-time departures, is another critical benchmark. MAG currently ranks among the top five airlines in the Asia-Pacific region for punctuality.
On customer satisfaction, the airline tracks 11 touchpoints, from website booking to cabin crew service. Malaysia Airlines’ cabin crew are ranked eighth globally, with ambitions to return to the top spot it once held two decades ago.
Addressing the often-debated issue of airfares, Nasaruddin explained that pricing is governed by a dynamic supply-demand algorithm used across the industry, alongside operational costs.
“For a Kuala Lumpur-London flight, just the fuel alone requires 150,000kg, equivalent to RM1 million. So the further you go, the fare will be higher. Product offerings, like serving steak or caviar, also influence pricing,” he said.
MAG currently operates 117 aircraft, with plans to add 40 more over the next decade. The group carried about 40–50 million passengers annually pre-pandemic, but expects to serve 15 million in 2025 as recovery continues.
Through its oneworld alliance and global partners, MAG offers connectivity to 900 destinations worldwide.
“From Singapore to Kuala Lumpur to Doha to Boston, passengers can travel seamlessly under our network,” Nasaruddin said.
As MAG embarks on its second decade, its priorities are clear: scale up digitalisation, expand in-house capabilities like catering, and double down on operational excellence.
“Safety, punctuality, customer experience and financial strength, those are the four pillars we measure ourselves on. And these are what will carry us forward,” Nasaruddin said.